Frontier alters rules for frequent-flier award tickets

More miles will be needed; booking fees could hit $100

By Chris Walsh, Rocky Mountain News (Contact)

Published August 21, 2008 at 9:05 p.m.

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Frontier Airlines will boost the number of miles needed for award tickets and start charging fees of up to $100 to book those flights as well, its latest move to fight persistently high fuel costs.

The Denver-based carrier, which is operating in Chapter 11 bankruptcy protection, announced Thursday that the redemption level for a free domestic ticket will rise to 20,000 miles - up from 15,000 - effective Sept. 15. The number of miles needed for a round-trip ticket to Canada or Mexico will increase by up to 10,000 miles.

Frontier also will start charging $25 to book an award ticket, and it will tack on another $75 if the departure is within 14 days.

The carrier acknowledged the impact on consumers but said the moves are necessary to reduce costs and raise revenue as the company tries to lock in the money it needs to exit bankruptcy.

"The customer looks at this one way, while investors and the people that lend us money look at it in another way," said Jim Young, Frontier's vice president of marketing, sales and distribution.

The carrier also will charge $75 to change or cancel a reward flight. Frontier said fliers who have Summit status in its frequent-flier program are exempt from the fees, while those at the Ascent level may bypass the $75 charge on certain last-minute specials and unrestricted awards.

It's the latest move by Frontier to charge customers for services and amenities - including in-flight food and checking a second bag - that used to be free. Fees for other services, such as issuing a paper ticket, also are up.

"As everyone knows, the cost of fuel is driving most of the changes we're making," said Frontier spokeswoman Lindsey Purves.

Other airlines also have instituted new charges as they try to pass on the high cost of fuel beyond fare hikes. US Airways and Delta Air Lines announced in June that they would begin charging $25 to book award tickets for domestic travel and even more for international destinations.

Frontier's frequent-flier program still awards tickets at lower levels than most of its competitors, which typically require 25,000 miles. But one of its main rivals - Southwest Airlines - hasn't started charging for award tickets or instituting new fees, which puts Frontier at a competitive disadvantage, observers said.

"Frontier must be careful because it continues to compete against both United and Southwest, which has a program that statistically has great reward availability," said Jay Sorensen, president of Wisconsin-based airline consulting firm IdeaWorks. "That's a very powerful feature in today's environment."

Sorensen said the increase in the number of miles needed for a ticket is a good move, though he called the new fees "unfortunate."

Frontier gleans millions of dollars a year by selling miles to its credit-card partner, which uses them as a way to entice new customers. Requiring more miles and charging fees to use them could make the program less attractive to credit-card holders. That, in turn, could lead to a decrease in Frontier's revenues from the sale of miles.

The carrier, however, said it has struck a deal with its credit-card partner to offer 20,000 miles to new customers instead of 15,000.

walshc@RockyMountainNews.com or 303-954-2744

• August 22, 2008

  1:05 p.m.

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